BY ANGIE NG
angie@thestar.com.my
Luxurious condominiums that may appeal to Malaysians.
OWNING property overseas is a statement of one's social and financial status. The preferred destinations for Malaysians to buy into include the popular global cities of London, New York, Sydney, Melbourne, Auckland and Singapore.
Bangkok-based property consultancy WinWin Property Link Company Ltd is calling upon Malaysians who want to diversify their property portfolio offshore to consider Thailand’s condominium property market.
WinWin Property Link managing director Chana Borvornluck.
WinWin Property Link managing director Chana Borvornluck says foreigners can buy condominiums in Thailand’s cities that include Bangkok, Pattaya, Huahin, Phuket, Hatyai and Chiangmai.
He says a foreign property buyer can also opt to set up a company in Thailand which has a Thai partner holding 51% share in the company, while the foreign partner holds the remaining 49%. The Thai company will be eligible to buy any types of property, including land, resort, warehouse, factory, landed house, apartment, office building and condominiums.
“If the property is for investment, I recommend Bangkok and Pattaya, and if it is for use as a second home, popular tourist areas like Pattaya,Phuket, Huahin and Chiangmai are among the ideal places.
“We can see consumer confidence starting to pick up and the market outlook is more stable now,” he adds.
Chana says among the interesting condominium projects are Ivy Ampio in Ratchadapisek, Bangkok, by Pruksa Real Estate Plc; Baanplaihaad in Wong- ammart, Pattaya, by Sansiri Plc; Centric Huai Kwang Station in Ratchadapisek, Bangkok by SC Asset Plc; Knightsbridge Bearing in Sukhumvit, Bangkok by Origin Property Plc and Sky Walk, which is also in Sukhumvit, Bangkok by Woraluk Property Plc. On WinWin Property Link, he says the company has 40 years experience offering consulting services to Thai and foreign property customers, including those from China, Taiwan, Hong Kong, Malaysia and Singapore.
“Buying or selling property in Thailand involves many processes and the various government departments. WinWin Property’s pool of experienced advisors will help to speed up the process and help the property buyers save on fees and tax.
“We provide advice and information for all types of property buying and selling in Thailand. We have all the key links to experienced property agents and network in Thailand, and is open to all property sellers and buyers of all kinds of properties in Thailand,” he explains.
Chana’s view of Thailand’s property market echoes that of Thai Condominium Association president Prasert Taedullayasatit, who is also the managing director of Pruksa Real Estate Plc. Prasert has been quoted by The Nation news website as saying that it is a good time to buy residences in Thailand as some units may come up for resale when their owners face cash crunch when commercial banks reject their mortgage applications.
He says that up to 30 billion baht worth of condominium units would be transferred to customers in the last quarter of this year, and about 10% to 20% of applicants had been rejected for mortgages by commercial banks. As a result, property firms have to resell them to the market.
“This is the best time to buy condominiums, as the price will be lower than for new condo projects launched this year, especially those whose construction began in 2013.
“Resale condos will offer a price lower than for new condominiums by between 10% and 15% normally,” he explains.
Competitive baht factor
Savills (Thailand) Ltd chief executive officer Robert A Collins.
Meanwhile, Savills (Thailand) Ltd chief executive officer Robert A Collins observes that new launches and sales take- up in Thailand has slowed moderately this year, although no significant downturn has been seen.
“The premium high-end residential sector has continued to perform well though, and there remains very real demand for luxury condominiums in prime Bangkok locations from both local and foreign buyers,” he notes.
Collins explains that foreigners who wish to purchase residential condominiums or buy into a strata title office tower may own up to 49% of the units within any single tower. The balance of 51% of units must be owned by Thai nationals.
He says the most significant new commercial development is the Super Tower by G Land, a 125-storey office tower that will be the tallest office tower in the Asean region at 615 meters high.
“Vacancy in Bangkok’s office leasing sector is the lowest in 20 years, and this remains a very strong area of opportunity for developers and investors. With almost no new supply of office space available in the short- to medium-term, office rents are expected to rise year- on-year,” he adds.
Savills Malaysia deputy managing director Paul Khong.
Savills Malaysia deputy managing director Paul Khong says with the low baht forex rates, many foreign investors can take advantage of the current buying opportunity of Thai properties at cheap prices in their local currencies.
Depending on location, the active buyers are from countries such as Hong Kong, China, Singapore, Taiwan, Britain and Germany, among others.
“Over the past few years, the Chinese renminbi has gained a lot over the baht, and Chinese buyers are taking advantage of their strong currency and proximity to Thailand to invest in vacation homes and investment properties in Thailand.
“Chinese businessmen with commercial interests in Thailand were among the first buyers of local residential real estate, and now, even vacationers and investors are joining their ranks.
"The top destinations in Thailand are Pattaya, Koh Samui, Phuket, Chiang Mai and Bangkok,” he observes.
Khong says Thai properties are not the top favourites for Malaysian buyers, but there are still some heading that way from the northern peninsular states.
Likewise, Malaysian properties are never really a hot favourite for investments in Thailand even though the two countries are close neighbours.
“We have held some exhibitions of Malaysian projects in Thailand earlier and responses have been fair. We note that for the Thais investing overseas, the preferred choice of investment is still in London and Australia,” he says.
